This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Company-based determinants of training and the impact of training on company performance Results from an international HRM survey Bo Hansson School of Business, Ma lardalen University, Va stera s, Sweden Abstract Purpose The purpose of this study is to use an international dataset to examine what determines employee training from an organisational perspective, and to what extent training investments enhance company performance. Design/methodology/approach Data from 5,824 private-sector organisations are used to examine determinants of training and the connection between training and profitability. OLS regressions and Probit estimates are used in the statistical analyses. Findings The results indicate that the provision of company training is largely determined by firm-specific factors, such as human resource management (HRM) practices. The results further show that two widely used measures of training incidence and intensity are largely determined by different factors. Staff turnover (mobility) does not appear to be a decisive factor in explaining the provision of training on a national or company level, although it is associated with lower profitability to some extent. However, the single most important factor associated with profitability is how much is invested in training (intensity), suggesting that the economic benefits of training outweigh the cost of staff turnover. Originality/value This study contributes to the existing training literature by offering extensive access to internal measures of training, profitability, HRM practices, workforce characteristics and staff turnover for companies in 26 countries worldwide. Keywords Training, Determinants, Profit, Jobs, Human resource management Paper type Research paper Introduction In a society that has become increasingly dependent on knowledge and skills, it seems clear that company-based training makes a substantial contribution to overall investment in human capital stock. Considerable sums are spent on company training each year. In the sample of firms investigated in the present study, approximately 3 per cent of wage bills is spent on training and close to 45 per cent of employees are trained annually. The importance of company training is also manifested in the large number of published reports on the subject (for an overview of research findings see, for instance, Boselie et al. (2001); Bartel (2000); Hansson et al. (2004)). Two major sources of The current issue and full text archive of this journal is available at www.emeraldinsight.com/0048-3486.htm The author thanks Ulf Johanson, Karl-Heinz Leitner and Tina Lindeberg for their assistance. Thanks are also due to participants at the 2002 Vocational Education and Training Conference in Thessalonica, Greece for their comments on an earlier draft of this paper. Any remaining errors are the authors responsibility....
View Full Document
This note was uploaded on 03/16/2011 for the course ECON 101 taught by Professor Dunst during the Spring '08 term at Alabama.
- Spring '08